Billet
Iran billet market is experiencing a hard time in the current weeks. Despite price depressions, lack of demand is obvious in the market. Last week, limited transactions of size 150 mm billet were done at IRR 5.900/kilo ($593/mt) including custom duty and 3% VAT.
Factors influencing billet market in Iran include decreasing price of billet in global markets and depressing market of long products especially debar in regional market. Generally, market sentiment is completely negative.
Import offer price was at least $590/mt cfr Anzali last week, but there was no buying interest at this level.
It''s likely if billet price falls to $500/mt cfr Anzali, buying activity would increase. But these days many traders are out of market and not willing to order.
Long products
Last week long products average prices were in downward trend. From Sunday, IPE price decreased around IRR 50-100/k ($ 5-10/mt), debar about IRR 50/k ($5/mt), Angle about IRR 30/k ($3/mt) and UNP around IRR100/k ($10/mt). This trend continued through the week, prices in TME (Tehran Metal Exchange) were stable but no buying interest.
Low price debars from China have made problems in the market like last Iranian year. At the beginning of last week parcels of 2,000 tones Chinese debar were priced at IRR 6,200/k ($623/mt) but parcels more than 20,000 tones were offered at IRR5800/k ($582/mt) but steel no buying interest.
As long products prices are decreasing globally, demand in Iran market is low and domestic mills have stopped offering, we can say a round of price falling would be unavoidable.
May be some politicians would benefit from this situation but if the current trend stays in the market, it would have no result but bankruptcy and loses of many mills in private sector.
Flat products
Lack of demand is obvious in Iran HRC market. At the beginning of last week, 2.00 mm HRC was priced at IRR 6,000/kilo ($602/mt) including custom duty and 3% VAT, then it went down to IRR 5,900/k ($ 592/mt) at the end of the week. Its import offer is prevailing around $600/mt cfr Anzali port but buyers prefer to wait and see the market situation as prices are decreasing. If Iranian buyers continue this waiting policy, maybe prices of CIS producers would go down to $550/mt like last Iranian year. Traders have offered 20,000 tones of this material for immediate delivery at $600/mt but there is no buyer in the market.
About other sizes of HRP, a slow downward trend was prevalent in the market last week. Mobarake Steel''s offer prices were down by IRR100/k ($10/mt).
Cold rolled coil price was stable last week. Its supply is too limited in Iran, thus lack of demand has no influence on prices. If this situation continues, there would be no availability of some sizes in the market in near future. CIS mills have offered CRC at $750/mt cfr Anzali but it should be under $700 to be interesting for Iranian buyers.
About HDG and PPGI prices, they were almost stable in Iran flat market last week.
Iran Steel Service Centre